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H0194.........................................by TRANSPORTATION AND DEFENSE MOTOR VEHICLE DEALER - LICENSE - Adds to and amends existing law relating to licensing of motor vehicle and vessel dealers and manufacturers to require a certificate of insurance as a condition of licensure or renewal of a license; to provide for suspension of a dealer's or manufacturer's license for failure to maintain a principal place of business; and to provide for assessment of a reinstatement fee prior to reissuing a previously suspended license. 02/11 House intro - 1st rdg - to printing 02/14 Rpt prt - to Transp
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-eighth Legislature First Regular Session - 2005 IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 194 BY TRANSPORTATION AND DEFENSE COMMITTEE 1 AN ACT 2 RELATING TO LICENSING OF MOTOR VEHICLE DEALERS AND SALESMEN; AMENDING SECTION 3 49-1607, IDAHO CODE, TO PROVIDE FOR ASSESSMENT OF A REINSTATEMENT FEE; 4 AMENDING SECTION 49-1608, IDAHO CODE, TO REQUIRE PAYMENT OF A REINSTATE- 5 MENT FEE AND TO MAKE TECHNICAL CORRECTIONS; AMENDING CHAPTER 16, TITLE 49, 6 IDAHO CODE, BY THE ADDITION OF A NEW SECTION 49-1608A, IDAHO CODE, TO 7 REQUIRE A CERTIFICATE OF INSURANCE AS A CONDITION OF OBTAINING OR RENEWING 8 A VEHICLE OR VESSEL DEALER'S OR MANUFACTURER'S LICENSE, TO PROVIDE FOR 9 FILING A CERTIFICATE WITH THE IDAHO TRANSPORTATION DEPARTMENT AND TO PRO- 10 VIDE FOR REINSTATEMENT OF A LICENSE SUSPENDED FOR FAILURE TO MAINTAIN 11 INSURANCE; AND AMENDING SECTION 49-1612, IDAHO CODE, TO PROVIDE FOR SUS- 12 PENSION OF A DEALER'S OR MANUFACTURER'S LICENSE FOR FAILURE TO MAINTAIN A 13 PRINCIPAL PLACE OF BUSINESS, TO PROVIDE FOR APPEAL OF THE SUSPENSION, TO 14 REQUIRE PAYMENT OF A REINSTATEMENT FEE, TO PROVIDE PROPER TERMINOLOGY AND 15 TO MAKE A TECHNICAL CORRECTION. 16 Be It Enacted by the Legislature of the State of Idaho: 17 SECTION 1. That Section 49-1607, Idaho Code, be, and the same is hereby 18 amended to read as follows: 19 49-1607. FEES -- FUNDS -- EXPENSES -- EXPIRATION OF LICENSES. (1) The 20 department shall collect with each application for licensure, the following 21 fees: 22 (a) Dealer's, wholesale dealer's and vehicle manufacturer's license, ini- 23 tial application, one hundred twenty-five dollars ($125), ten dollars 24 ($10.00) of which shall be deposited in the county current expense fund. 25 Renewal application, one hundred dollars ($100). 26 (b) Vehicle salesman's license, twenty-five dollars ($25.00), ten dollars 27 ($10.00) of which shall be deposited in the county current expense fund. 28 (c) Distributor-factory branch-distributor branch license, one hundred 29 dollars ($100). 30 (d) Representative's license, twenty-five dollars ($25.00). 31 (e) To reissue a license, salesman and dealer identification cards or 32 other licensing documents at a dealer's request, not resulting from an 33 error by the department, a fee of ten dollars ($10.00) per document. 34 (f) Supplemental lot license or relocated principal place of business, 35 and temporary supplemental lot, twenty-five dollars ($25.00) for license 36 issued to a single dealer. A fee of fifty dollars ($50.00) for a license 37 issued to a group of dealers for a temporary supplemental lot. 38 (g) Reinstatement fee, five hundred dollars ($500). Reinstatement fee is 39 due prior to reinstatement or renewal of any license issued pursuant to 40 this chapter which was previously suspended, revoked or canceled. 41 (2) All fees shall be paid over to the state treasurer for credit to the 42 state highway account out of which shall be paid the expenses of the depart- 43 ment and the expenses incurred in enforcing the provisions of this chapter. 2 1 (3) Dealer licenses, if not suspended or revoked, may be renewed from 2 year to year upon the payment of the fees specified in this section to accom- 3 pany applications, and renewals shall be made in accordance with the provi- 4 sions of section 49-1634, Idaho Code. 5 (a) There shall be twelve (12) licensing periods, starting with January 6 and ending in December. A dealer's license shall be in effect from the 7 month of initial licensing through the last day of the next year's calen- 8 dar month that precedes the month of the initial licensing. 9 (b) Any renewal license application received or postmarked after thirty 10 (30) days from the end of the previous year's license period shall be 11 processed as an initial application and initial fees shall be paid. 12 (4) Salesman licenses, if not suspended or revoked, shall be valid for 13 three (3) years from the date of issue provided that: 14 (a) Employment remains with the sponsoring dealership; and 15 (b) The sponsoring dealership has a valid license issued by the depart- 16 ment. 17 Renewals shall be issued in accordance with the provisions of section 49-1635, 18 Idaho Code. 19 SECTION 2. That Section 49-1608, Idaho Code, be, and the same is hereby 20 amended to read as follows: 21 49-1608. LICENSE BOND. (1) Before any dealer's license shall be issued by 22 the department to any applicant, the applicant shall procure and file with the 23 department good and sufficient bond in the amount shown, conditioned that the 24 applicant shall not practice any fraud, make any fraudulent representation or 25 violate any of the provisions of this chapter, rules and regulationsof the 26 department, or provisions of chapter 5, title 49, section 49-1418, or chapter 27 6, title 48, Idaho Code, or federal motor vehicle safety standards, or odome- 28 ter fraud in the conduct of the business for which he is licensed. 29 (a) All dealers, including wholesale, but excluding a dealer exclusively 30 in the business of motorcycles and motor scooters, all-terrain vehicles 31 and snow machine sales, twenty thousand dollars ($20,000). 32 (b) A dealer exclusively in the business of motorcycle and motor scooter 33 sales, all-terrain vehicles and snow machine sales, ten thousand dollars 34 ($10,000). 35 (2) The bond required in this section may be continuous in form and the 36 total aggregate liability on the bond shall be limited to the payment of the 37 amounts set forth in this section. The bond shall be in the following form: 38 (a) A corporate surety bond, by a surety licensed to do business in this 39 state; or 40 (b) A certificate of deposit, in a form prescribed by the director; or 41 (c) A cash deposit with the director. 42 (3) If a bond is cancelledcanceled or otherwise becomes invalid, upon 43 receiving notice of the cancellation or invalidity, the department shall imme- 44 diately suspend the dealer's license and take possession of the license 45 itself, all vehicle plates used in the business and all unused title applica- 46 tions of the licensee. The licensee is entitled to a hearing which shall be 47 held within twenty (20) days of the suspension. Upon receiving notice that a 48 valid bond is in force, the department shall immediately reinstate the 49 license, upon payment of the reinstatement fee as required pursuant to section 50 49-1607, Idaho Code. 51 (4) The bond requirements of this section shall be satisfied if the 52 applicant is a duly licensed manufactured home dealer in accordance with chap- 53 ter 21, title 44, Idaho Code, and the bond required by section 44-2103, Idaho 3 1 Code, otherwise meets the requirements of this section. The amount of the bond 2 shall be in the amount as required in this section or that required in section 3 44-2103, Idaho Code, whichever is greater. The applicant shall furnish a cer- 4 tified copy of the bond as required in section 44-2103, Idaho Code, to the 5 department. 6 SECTION 3. That Chapter 16, Title 49, Idaho Code, be, and the same is 7 hereby amended by the addition thereto of a NEW SECTION, to be known and des- 8 ignated as Section 49-1608A, Idaho Code, and to read as follows: 9 49-1608A. CERTIFICATE OF INSURANCE. (1) A certificate of insurance is 10 required prior to issuance or renewal of any vehicle or vessel dealer's or 11 manufacturer's license issued pursuant to this chapter. The certificate shall: 12 (a) Be issued by an insurance carrier licensed to do business within this 13 state; 14 (b) Verify that the insured person is covered by a policy that provides, 15 at a minimum, the limits of coverage as required under section 49-117, 16 Idaho Code, relating to proof of financial responsibility; 17 (c) Verify that the insured person is covered by a policy that provides 18 for payment of judgments as required in section 49-1206, Idaho Code; 19 (d) Verify that the insured person's policy covers all vehicles manufac- 20 tured, owned, operated, used or maintained by or under the control of the 21 insured; 22 (e) Verify that the insured person's policy covers all other persons who, 23 with the consent of the insured, use or operate vehicles manufactured, 24 owned or maintained by or under the control of the insured person. 25 (f) Be dated as of the date of the motor vehicle policy for which it is 26 given; 27 (g) Contain the policy number; and 28 (h) Contain a provision requiring that the insurer shall notify the 29 department in writing of any cancellation of the policy and that the 30 insurer shall continue to be liable under the policy until the department 31 receives the notice or until the cancellation date specified in the 32 notice, whichever occurs later. 33 (2) The written certificate of insurance shall be filed upon a form 34 approved by the department and shall be held by the department. 35 (3) If a certificate of insurance is canceled or otherwise becomes 36 invalid, upon receiving notice of the cancellation or invalidity, the depart- 37 ment shall immediately suspend the license and take physical possession of the 38 license, all vehicle plates used in the business and all unused title applica- 39 tions of the licensee. The licensee is entitled to a hearing which shall be 40 held within twenty (20) days of the suspension. Upon receiving a valid certif- 41 icate of insurance and payment of the reinstatement fee, the department shall 42 immediately reinstate the license. 43 (4) The provisions of this section are supplemental to and shall not be 44 construed to alter or affect the provisions of section 49-1212, Idaho Code. 45 SECTION 4. That Section 49-1612, Idaho Code, be, and the same is hereby 46 amended to read as follows: 47 49-1612. NOTICE OF CHANGE OF ADDRESS. (1) The department shall not issue 48 a dealer's or manufacturer's license to any applicant who does not have a 49 principal place of business. 50 (2) Should the dealer or manufacturer change the site or location of his 51 principal place of business, he shall immediately upon making the change 4 1 notify the department, and a new license shall be granted for the unexpired 2 portion of the term of the license, providing the new location meets all the 3 requirements for a principal place of business. 4 (3) Should a dealer or manufacturer cease to be in possession of a prin- 5 cipal place of business from and on which he conducts the business for which 6 he is licensed, hethe dealer's or manufacturer's license shall be suspended. 7 The licensee shall have twenty (20) days to appeal the suspension as provided 8 in section 49-1618, Idaho Code. 9 (4) The dealer or manufacturer shall immediately notify the department 10 and upon demand by the department shall deliver the dealer's or manufacturer's 11 license, which shall be held and retained until it shall be made to appear to 12 the department that the licensee has again come into possession of a principal 13 place of business, whereupon the dealer's or manufacturer's license shall, 14 upon payment of the reinstatement fee, be reissued to him , without charge. 15 (5) Nothing in the provisions of this chapter shall be construed to pre- 16 vent a dealer or manufacturer from conducting the business for which the 17 dealer or manufacturer is licensed at one (1) or more licensed supplemental 18 lots or locations not contiguous to the dealer's or manufacturer's principal 19 place of business but operated and maintained in conjunction with it.
STATEMENT OF PURPOSE RS 14817C1 The purpose of this legislation is to require that licensed motor vehicle dealers provide the Idaho Transportation Department with a verification of existence of a business liability insurance policy for motor vehicle dealers. The legislation outlines the requirements of such a policy which are similar to the requirements of dealer bonds. The legislation is intended to protect the public from small vehicle dealers with minimal assets who fail to have the required liability insurance, as specified in Idaho Code 49-1230 and 49-117, in case of an accident. The legislation also initiates a reinstatement fee to renew or reinstate licenses for motor vehicle dealers who have had their licenses revoked, cancelled, or suspended. This will help alleviate some of the costs incurred to the Idaho Transportation Department when canceling, then shortly thereafter reinstating, the vehicle dealers licenses. FISCAL NOTE One full time PCN at $35,000 annually Capital money for PCN (one time) $5,000 Programming (one time) approximately $8,500 Revenue is estimated at 200 reinstatements annually at $500 for approximately $100,000 in revenue. Contact Name: Rep. Bob Nonini Phone: 332-1000 Name: China Veldhouse, Independent Auto Dealers Assoc. Phone: 724-3047 STATEMENT OF PURPOSE/FISCAL NOTE H 194